India PV growth likely at 1-2% in FY26; Maruti to outpace industry: Suzuki

Japanese small car major Suzuki Motor Corporation on Monday said overall passenger vehicle wholesale in the Indian market is expected to grow around 1-2 per cent in 2025-26, with the company's arm Maruti Suzuki looking to outpace industry growth.

The company which has earmarked total capital expenditures of 380 billion yen for 2025-26 said "investments in India will account for approximately 50 per cent" of it with plans to increase production capacity of passenger vehicles.

On the outlook for FY2025-26 in India, Suzuki Motor Corporation (SMC) in an investor presentation said, "Although SUVs continue to be strong in the market, demand for compact cars continues to be sluggish, and the overall market for wholesale sales is expected to grow by (around) 1 to 2 per cent."  It further said, "With the launch of two new SUVs, including the BEV e VITARA, our company plans to outpace market growth."

In addition, the new Kharkhoda plant where it initiated production in February this year, will contribute "to increased production and sales of the popular SUV Brezza", it added.

SMC said it has earmarked "capital expenditures of 380 billion yen, of which investments in India will account for approximately 50 per cent, with plans to increase production capacity of mainly automobiles".

In March this year, Maruti Suzuki India board had approved an investment of Rs 7,410 crore to set up a third plant at Kharkhoda in Haryana with a capacity of up to 2.5 lakh vehicles per year.

On exports from India, SMC said in 2024-25, it expanded exports to Africa and other regions and export volume increased by 50,000 units to 3.33 lakh units.

"As well as being a global production and export base for battery EVs, the company will contribute to the Make in India initiative of the Indian government by expanding global exports while flexibly responding to the increase in demand in India as it works to build a system to produce 4 million units in India," it said.

The company further said, "In the summer of 2025, we plan to launch the e VITARA, Suzuki's first battery EV. Sales will begin in India, Europe, Japan and other countries around the world around the summer of 2025.